Italy

The Accountancy Europe document dated 21 September 2026 explores AI applications in auditing: document analysis, risk assessment, audit procedure automation, and workpaper preparation. While AI enhances efficiency, it introduces risks regarding data quality, algorithmic bias, and the auditor’s ultimate responsibility for conclusions. The report urges firms to establish governance frameworks. Key Takeaways Efficiency Gains: AI

On 5 October 2026, L&B Partners Avvocati Associati announced the appointment of Irene Pellecchia as a new Partner within its Tax Department, marking a further reinforcement of a practice area originally launched in 2025 and progressively expanded throughout 2026. This strategic hire reflects the firm’s ambition to establish a full-service tax advisory platform capable of

As of 5 October 2026, the Italian tax authority has released the second part of a comprehensive four-part series addressing the tax treatment of real estate held by construction companies. This installment focuses on the accounting classification of properties built for sale, which must be recorded as inventory rather than fixed assets. The analysis covers

On 5 October 2026, the Italian Revenue Agency published response to interpello n. 169/2026, providing crucial clarification on the “ZES Unica” (Single Special Economic Zone) tax credit. The ruling confirms that an investment can qualify for the automatic tax credit even if construction or acquisition began before the mandatory preventive communication to the authorities, provided

Effective from 5 October 2026, the Italian government’s Omnibus Decree (Decreto Omnibus) has significantly extended the time limits for exercising VAT deduction rights and registering purchase invoices. Previously, taxpayers had to claim input VAT deduction by the VAT return for the year in which the right arose (typically the year of invoice receipt) and register

On 5 October 2026, the Italian Department of Finance (Dipartimento delle Finanze) published the monthly tax revenue bulletin covering the first eight months of 2026. The report confirms a positive trend in state tax receipts assessed on an accrual basis, with total revenue reaching €398.787 billion, an increase of €10.099 billion (+2.6%) compared to the

Published on 3 October 2026, Legislative Decree 147/2026 implements a comprehensive reform of administrative penalties for regional and local taxes (IMU, TARI, regional surtax on IRPEF, etc.). The decree aligns the sanctioning regime for these taxes with the general principles of the Tax Penalty Statute (Legislative Decree 472/1997), ensuring consistency, proportionality, and taxpayer rights. A

As of 2 October 2026, the Italian flat tax regime for new residents (imposta sostitutiva per neo-residenti) has been updated for the 2026 tax year, introducing a new annual lump-sum of €300,000 for the primary taxpayer and €50,000 for each family member. However, the legislation maintains a grandfathering clause: individuals who transferred their tax residence

On 2 October 2026, the Italian Revenue Agency (Agenzia delle Entrate) released Resolution n. 35/2026, establishing the specific F24 tax codes (codici tributo) for the payment of penalties arising from automated communications (comunicazioni di irregolarità) related to omitted VAT returns (omessa dichiarazione IVA). These communications are sent under art. 54-bis of DPR 633/72 when the

On 2 October 2026, the Italian Council of State (Consiglio di Stato) issued two significant rulings addressing whether tax credits (crediti d’imposta) can be considered as reducing the labor cost component in public procurement tenders. The issue arises because Italian public contracts law requires bidders to demonstrate that their offered labor costs are not abnormally